Mortgage and Market Update for July 27th
Economic News: Overseas economic concerns weighed on our equity markets early in the week. News from the European Central Bank that it will become more aggressive has bolstered confidence and the US Stock Market is in rally mode. New and Pending Home Sales were softer for June after a strong showing in both April and May. Weekly Jobless Claims tumbled to 353K from an expected 380K. Gross Domestic Product softened in the 2nd Quarter at a 1.5% annualized rate. Is the California Real Estate Market improving? The stats say yes. Equity sales rose to 58% of the market from a level of 50.5% last June. REO’s, which comprised 29.2% of the sales at this time last year are 20.4% now. There was a very slight uptick in short sale closings which can actually be construed as good news.
Mortgage Markets: The 10 Year Note & Mortgage Backed Securities are under pressure with the strength in the stock market. The 10 Year Note is currently trading at 1.558% versus the 52 week low we saw on Wednesday of 1.40%.
Next Week’s Reports:Tuesday: Personal Income & Outlays, Case-Shiller Home Price Index, Consumer Confidence Wednesday: ADP Employment Report, ISM Manufacturing Index, FOMC Meeting Announcement Thursday: Jobless Claims, Factory Orders Friday: Employment Situation, ISM Non-Manufacturing Index
While I do not originate loans I make it a habit to keep abreast of mortgage & market conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.